Comments
Gautam Adani-led Ambuja Cements has increased the open offer price for Sanghi Industries to ₹121.90 a share from ₹114.22 as the company completed the deal to acquire shares from the erstwhile promoters.
Ambuja Cements had acquired 14 crore equity shares of Sanghi Industries, representing 54.51 per cent equity at ₹121.90 per equity share from the promoters.
The remaining 57 lakh equity shares representing 2.23 per cent of Sanghi Industries was to be acquired separately, said Ambuja Cements in a statement.
The company has also extended inter-corporate loan of ₹1,810 crore to Sanghi Industries for repayment of existing loans.
On August 3, Ambuja Cement announced plans to acquire a 56.74 per cent stake in Sanghi Industries from its promoter group — Ravi Sanghi and family. The deal was executed at an enterprise value of ₹5,185 crore. The acquisition was funded through interna-l accruals.
SIL has an integrated manufacturing unit and clinker production facility on 2,700 hectares at Sanghipuram. This facility comprises two kilns with clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a dedicated 13 MW captive power plant and 13 MW Waste Heat Recovery System. The unit is connected to a captive jetty in Sanghipuram.
Expansion plans
SIL also has billion-tonne of high quality limestone reserves. ACL targets to increase the cement capacity at the plant to 15 MTPA along the West Coast on the strength of SIL’s low-cost clinker.
ACL will invest in expanding the existing captive port at Sanghipuram to accommodate larger vessels to meet the growing demand for cement across Gujarat, Maharashtra, Karnataka and Kerala. This is expected to be commissioned over next 30 months.
The company plans to increase clinker capacity by 0.5 mtpa and cement capacity by 1.5 mtpa through debottle necking. The unit also offers potential for green power generation, reaching up to 45 per cent, incorporating an additional 12 MW WHRS and 30 MW of Solar/Wind power.
This multi-fuel flexibility enables the utilisation of locally available lignite and an increase in AFR consumption to up to 20 per cent, positioning Sanghipuram as the largest single-location clinker complex.
Ajay Kapur, CEO, Cement Business, said the acquisition represents a significant step forward in the Group’s strategy to solidify its leadership position in the cement industry.
It strengthens the Group’s commitment to delivering high-quality products and services to customers while contributing to the country’s infrastructure development, he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.